PR 101

Last Wednesday, I said Toyota was slow out of the blocks to respond to the various crises it has faced of late. I think I was blogger 10,143 to state the obvious. However, I also said the company is showing signs of regaining its equilibrium.

Note: I drive a 2000 Camry. Both my children drive Corollas.

The company is running ads in every print and broadcast outlet it can find – including a lot of radio. It has shown pictures of its idled factories to demonstrate how serious it is in identifying the accelerator and brake issues. It also has a very active presence on Facebook.

Still while this is a good start, I think the company could do more. I think they if they handled it as I suggest, they would turn a negative into a positive.

Do What Datsun Did

The first thing Toyota’s C-Suite executives should do is plan road trips to every dealer in every country where Toyota is sold. The road trippers should be Chairman Fujio Cho, Vice Chairmen of the Board Katsuaki Watanabe and Kazuo Okamo, President Akio Toyoda, and in North America, Jim Lentz, president and chief operating officer of Toyota Motor Sales, USA. If there are people who hold the same positions as Lenz in Europe, Asia, South America, the Middle East and Africa, they should also pack their bags.

They need to take a page from the handbook of retired Nissan executive Yutaka Katayama.  It was Katayama who made Datsun (which later returned to its original name of Nissan) into the first Japanese automobile success story in the United States, according to the late journalist and author David Halberstam. It was Halberstam who detailed Datsun’s success in “The Reckoning” – his account of the rise the Japanese auto industry.

Katayama lived in the United States. He traveled constantly around the U.S., meeting, customers, dealers, reporters and anyone else who talk to him. Halberstam explained that Katayama made Datsun a powerhouse because “he (Katayama) was a rare man. He brought a face to the Japanese mercantile presence; meeting him, Americans felt they knew, understood and liked the Japan that was behind his products.”

This is what Toyota’s executives should be doing. Going to every place in the world where there have been problems. Once there, they should personally apologize to their customers. They should be interviewed by the media in each city and repeat the apology. They should honestly answer the tough questions about what they knew and when they knew it. They should be speaking to every group that will listen. There should be town hall style meetings at dealerships for the customers and the general public to air grievances.

These public appearances will, in my opinion, do much to quell the anger and rebuild trust. Most people are willing to forgive a mistake, as long the one who makes the mistake sincerely apologizes.

Cut Prices

Second, a simple thing to do would to be slash prices on all models. Not a token five percent cut – a real one in the neighborhood of 25 percent. For those who have a car with a defective accelerator or brakes, give them a new car. I would throw into five years free maintenance for every car sold. Not just for oil changes and other minor things, but for all repairs from replacing a headlamp to replacing a transmission.

More Social Media

Third, I would make better use of social media than they are. Both Cho and Lenz should be blogging every week. Craig Newmark – the Craig of Craig’s List does, as does Jonathan Swartz, president and chief operating officer of Sun Microsystems and my personal favorite CEO blog, that of Southwest Airlines Gary Kelly. It has helped all three companies when they have hit rough patches. Explanations sound so much better when they come from the person in charge.

Finally, there are many, many people out there who are still strong Toyota supporters. Anecdotally, I know that because as Chester the Wonder Dog and I walk each day, I talk to Toyota owners. I have yet to find one who would get rid of their car.

I have also been on the Toyota Facebook page for U.S. owners. The level of support is amazing. Toyota needs to get those people more organized around company support. Most kind of companies would kill for that kind of support.

Put this all together and I think Toyota will be just fine.

Print publications are still a viable way to spread the news, a trio of business editors said last week. Print is still a vital to tell people what’s going, the three argued in a panel discussion held before the Southeastern Wisconsin chapter of the Public Relations Society of America.

“We are bullish on print,” Mark Sabljak, publisher of the Business Journal of Milwaukee. “Some people still enjoy a print product.”

All three seemed to be cautiously embracing electronic media. Salbjak seemed to be holding out the most. For instance, he noted he said in 2009 there would no blogging at the Business Journal until the paper found a way to make a profit on such an effort. The paper’s is now blogging because it has found a way to monetize the effort.

However, social media is changing the way news is being covered, said Steve Jagler, executive editor of Biztimes Milwaukee. Sites such as Twitter are not competition, he explained. Rather, it is helping the paper extend its brand, Jagler said. Social media amplifies the paper’s ability to report the news.

“We have a staff that understands the possibilities of social media,” Jagler said.

Social media has turned newspaper in 24-7 operations, said Chuck Melvin, assistant managing editor/business for the Milwaukee Journal Sentinel. The paper now has new ways to deliver the news. The paper is not longer just print-based. It now uses Twitter and other services to disseminate its stories.

“We are not just print-based anymore,” Melvin said. “Social media is a new way of delivering the news.”

Social media has actually improved the Journal Sentinel’s ability to cover news. By using blogs, the paper can pay more attention to niche markets. He cited reporter Tom Daykin’s real estate blog and art critic Mary Louise Schumacher’s blog on the Milwaukee art scene as two examples.

“I see a lot of growth in our blogs,” Melvin said. “We are also working to add more video to our website. It adds a lot of value to the reader experience.”

All three editors said the key to a successful story pitch is keeping it simple, providing relevant information and making sure the proper journalist is targeted. It is important the person making the pitch is talking to the right reporter. That means knowing what people cover and what their interests are.

“Make sure you know the media company’s mission,” Jagler said.

All three also said it is still okay to over an exclusive story to one publication.

“It is the same situation as it has always been,” Sabljak said. “It is more challenging to get one in these days of 24/7 news coverage. But, my reporters are paid to get exclusive stories.”

The increasing dominance of technology has made the role of the public relations practitioner more important, Melvin said. A good P.R. person can play a vital role in telling reporters what’s going on. I would add that because there is so much information being circulated that no one person could ever keep track of it. A good, targeted pitch probably has a better chance than ever of getting a reporter’s attention.

While acknowledging that the need to get the news out faster than ever can be strain, all three also said that hasn’t made their staff’s lose perspective.

“We have not lost the ability to do the in-depth story,” Melvin said.

This is the headline from the Dec. 11, 2009 crainsnewyork.com online business magazine: “367 magazines shuttered in 2009.”

The article goes on to report that: “As bad as the news is, the pace of decline appears to have slowed. In 2008, a total of 526 U.S. magazines ceased publication. In 2007, there were 573 that shut down.

The number of titles that folded may actually be higher, said Trish Hagood, president of Oxbridge Communications, parent company of MediaFinder, which describes itself as the largest online database of U.S. and Canadian publications. She explains that it will take until well into the new year to do a final tabulation.”

A knowledge gap is being created

I decided to write this blog because of last week’s announcement that two venerable magazines were shutting down: Editor & Publisher and Kirkus Reviews are being shuttered.

I know neither of these of magazines would be the kind likely to be sold at the grocery store checkout (except maybe for grocery stores in Cambridge, Mass, the lower East Side of New York and Berkley, Calif.). But, they served important purposes in their niches.

The century-old Editor & Publisher covered the newspaper industry. When I started as a reporter in 1975, it was a must read. If you wanted to know what going on in the business, you read E & P. I got my first two reporting jobs from classified ads in the magazine. It was a magazine in which readers’ actually read the ads first, especially the classified job listings.

Kirkus Reviews published over 5,000 book reviews annually. It was an important outlet, especially for new authors. It was often the first public exposure a first novel received. Kirkus was an important resource for bookstore buyers. They would often choose a novel to offer to their customers based on something they read in the magazine.

Personal note: As one who is writing a novel, and hoping to get it published, I mourn the loss of Kirkus. I also mourn the loss of E & P. It was an important press watchdog.

The closing of those two, and other magazines, is creating a knowledge gap.

Magazines used to occupy a unique place in news and information publishing. Newspapers were looked to as a daily source of information. That role has largely been taken over by Web-based news sources, including Twitter. Magazines were the source of the longer, more in-depth pieces. Magazines had the space and time to really tackle a subject. But, they were more immediate than a book.

With the death of so many magazines, a valuable source of explanation and analysis is going away. Oddly, to me at least, many newspapers are trying to turn themselves into daily magazines. They write long investigative stories that often run for several pages. That’s not why people read newspapers. They want to know what’s going on in the neighborhood. People don’t have time to ready long stories in the morning – when newspapers are delivered.

There is a solution

Yeah, you guessed it – I think magazines should be moving on line completely. I know Editor & Publisher has been on-line since the ‘90s. Kirkus is also online.  However, I don’t think either did a very good job of bringing readers to their websites. Like a lot of other publications, I think they saw the websites as an auxiliary to their print editions. It should have been the other way around.

There is precedent for this – the move of soap operas from radio to television in the early 1950s.

A little history first. In 1946, there were approximately 10,000 television sets in the United States, according to questia.com. By 1950, there were 3 million and by 1953, half of all households in the United States had a television. Kind of sounds like the growth of social media, doesn’t it?

Proctor & Gamble started soap operas on radio during the Depression. It was a marketing decision to sell more laundry soap and other products. When television began to dominate, P & G moved the soaps to television. After all, you go where the customers are – which is a rule of social media by the way.

So, why can’t magazines do the same thing? The web is becoming the dominant media – so why not move to the customers are? More and more people are doing their reading online. I still get Sports Illustrated’s print edition, but I also read it online every day. SI and other publications can do more on the web – post videos, run a lot more pictures, link to other relevant sites and be a lot more immediate in their analysis.

I think that move would save a lot of magazines. In cost alone, it would be a good move. No longer would a publisher have to factor the cost of production and printing.

Seems logical to me. Any thoughts anyone?

Note: I will not be posting on either next Monday or Wednesday. It is a holiday week and I am taking some time off. The next blog will run Jan. 4, 2010.